France Proposes Fresh Release of Diesel and Crude by EU, IEA

France proposed that European countries and member nations of the International Energy Agency release 100 million barrels of diesel and crude oil, a step that’s aimed at placating the Trump administration as it pushes Brussels to do more to cut fuel prices.

It emerged yesterday that Washington told at least one European country to release more emergency diesel inventories or face a US ban on exports of the fuel. Several EU countries have been slow to release their inventories and US President Donald Trump has said the bloc must do more to help get diesel prices under control.

France’s proposal, made during an online meeting of European officials to discuss a fuel release, was that European countries release 50 million barrels of diesel, people familiar with the matter said asking not to be identified because the discussions were private. Under the same proposal, member nations of the IEA would make 50 million barrels of crude available.

French President Emmanuel Macron discussed the global energy situation with Trump overnight and will convene a meeting of Group of Seven leaders as soon as possible, according to a statement from the presidency. That meeting will take place at 2:30 p.m. Paris time Friday, according to a person familiar with the matter.

Spokespeople for the French government and the European Commission didn’t immediately respond to requests for comment.

ICE Gasoil, Europe’s diesel benchmark, slumped by 5.9% to $1,365 a ton, outpacing a slump in crude oil futures.

While the Iran war has boosted the price of crude, it has placed even greater strain on prices for oil products like diesel and gasoline. That’s because the conflict, alongside Russia’s war in Ukraine, has resulted in a shortage of operational refineries to make those fuels. The US is Europe’s top external supplier of diesel.

Read More: Macron Plans G7 Leaders Call on Oil Prices as Soon as Possible

Diesel has surged to a record $6.50 a gallon at the pump in the US, hurting the nation’s farmers and spurring Trump to say he’d support a ban on exports of the fuel. In Europe, futures prices have at times climbed above $200 a barrel, a level traders say is high enough to put pressure on demand.

Europe generally consumes more diesel than it produces, meaning it often imports from far afield. However, the US threat of an export ban and China’s decision to cancel some fuel loadings in October on top of the two wars in Iran and Ukraine mean there are few options to add supply currently other than reserve releases.

Read More: What Can Trump Do to Tame Diesel and Gasoline Prices?